01
Purpose and development status
Secured is developing an opportunity for renters to invest eligible residential security-deposit funds through managed securities portfolios. The intended benefit is potential investment growth during a lease. Hosts would enable that opportunity for their renters, without taking a share of investment gains.
This version describes product intentions, not an operating investment service. The AI capabilities and investment workflows described here are planned. Concept development, investment research and formation work do not establish that required arrangements, providers or approvals are in place. This is a product and methodology explanation, not a prospectus or an invitation to transfer funds.
02
Participation and eligibility
The intended initial markets are California and Massachusetts. Actual availability depends on establishing a suitable deposit arrangement, eligibility conditions and operational readiness. A waitlist signup does not establish eligibility or open an investment account.
The intended model requires a residential lease and a participating host or property. A renter could choose a conventional deposit arrangement instead. Hosts would enable participation and renters would select a strategy. Whether a host must separately approve each deposit remains unresolved. Deposit amounts, minimum lease length, suitability and verification requirements have not been finalized.
03
Ownership and responsibilities
Renters would retain the beneficial or economic interest in the investments, including gains and losses. Secured or a nominee would hold the investments on record, and Secured would authorize purchases, sales and withdrawals. Authority to manage investments is separate from their economic ownership.
The legal entities, account structure, custodian, execution provider, administrator and their responsibilities have not been confirmed for public identification. Regulated custody, daily reconciliation, cycle auditing and complete trade records are planned capabilities, not established services.
04
The intended money flow
The proposed flow begins with a renter paying a deposit into an arrangement for the participating host, followed by transfer for investment through Secured. The entire eligible deposit is intended to be invested in a managed securities portfolio. The legal holding and transfer arrangements need to be established before this flow can operate.
Secured intends to fund approved host claims from its own cash, separately from the invested deposit. The source of that payment does not settle who ultimately bears its cost. Whether Secured would recover an advance from the renter’s investment balance, and how insufficient balances would be handled, remains unresolved.
At lease end, the intended process includes inspection, claim review, investment sales or redemption, transaction settlement, fee and obligation calculation, host payment and payout of the remaining value to the renter. The exact order and timing remain subject to the final arrangement.
05
Strategy selection and investment universe
Renters would choose among predefined portfolio strategies according to their risk profile. The interactive preview uses sample choices only; actual strategy names, number of options, allocations and suitability requirements are not yet set. Secured is describing managed baskets of securities, not issuing its own exchange-traded funds.
The intended universe includes company shares, government or Treasury securities, corporate bonds, existing ETFs and money-market instruments or funds. Derivatives are intended for hedging or reducing specified risks, not for a promised return enhancement. Not every strategy would necessarily hold every asset type. Instrument limits and exclusions remain under development.
06
AI-assisted research
The planned AI functions include analyzing financial statements and company information, interpreting market news, evaluating and ranking securities, recommending selections and portfolio allocations, monitoring risk and market changes, and explaining decisions to customers.
AI would recommend rather than authorize investment decisions. These capabilities are planned rather than implemented. Data sources, model evaluation, error handling and operational monitoring need to be defined and validated before use. No claim of predictive accuracy or superior investment performance is made.
07
Fundamental and quantitative analysis
Fundamental research would evaluate revenue, earnings, cash flow, debt, balance-sheet strength, valuation, credit quality and business quality. Technical and market inputs may complement that research; they are distinct from company fundamentals.
Quantitative analysis would inform security ranking, portfolio weights, diversification, concentration, volatility, position sizing, liquidity, duration and rebalancing. AI, fundamental research and quantitative analysis are intended to work together, without a fixed order. Numerical limits, investment horizons and risk boundaries remain under development.
08
Human approval and monitoring
A human would approve every investment decision. Planned monitoring would track changes in holdings, risk and market conditions and support understandable renter updates. The process illustration on the landing page communicates this intended relationship; it is not a live investment engine.
Human judgment, data and models can all be wrong. Governance roles, approval records, review frequency and exception handling must be established before these are described as operational controls.
09
Risk and capital preservation
The intended objective combines an opportunity for growth with capital preservation as an objective. It does not guarantee either. Investments may be worth less than the original security deposit, and renters would bear investment losses. Secured may underperform conventional deposit arrangements or savings.
Any investment-protection mechanism is a possible future feature, not part of the initial product described here. Secured-funded host-claim payments are not investment-loss protection. Diversification and hedging cannot eliminate risk.
Market movements, security selection, liquidity, transaction costs and the timing of sales can affect outcomes. Portfolio boundaries are still being developed. No performance figures, return targets, backtested results or projected growth paths are presented in this document.
10
Fees, earnings and tax reporting
The intended compensation model is a management fee only. Secured does not plan a separate share of investment gains or an early-exit fee. The management-fee rate, calculation base, accrual frequency, deduction timing and treatment during losses have not been set. The treatment of underlying fund expenses and other external costs also remains unresolved.
Earnings are intended to be reinvested, with the remaining investment value paid through lease-end settlement. Tax-reporting responsibilities and participant documents have not been defined. Reinvestment should not be understood to mean that taxes or reporting are deferred until payout.
11
Claims, early exit and settlement
The host workflow is intended to include deposit-related claims and review. Claim evidence, approval, disputes, host permissions and advance recovery are still being defined. Hosts are not given trading authority or access to renter holdings by the illustrative demo.
Conditional early withdrawal is intended to be possible with notice or approval. Investments might need to be sold at their current value. Notice periods, approval authority, settlement conditions and payout timing have not been finalized. There is no fixed or immediate-access promise.
The eventual process must reconcile applicable deposit requirements with investment settlement and claim handling. A lease term alone does not establish the final investment or payout arrangement.
12
Understanding the final balance
An explanation of payout should start with investment value available at settlement, then account for fees and renter-borne obligations that have not already been deducted. A reported value that already includes accrued fees must not have those same fees subtracted again.
Investment loss, host deductions, management fees and any reimbursement to Secured are separate events. Paying a host from Secured’s cash does not determine whether the renter’s balance is reduced. Until that policy and the fee terms are established, a precise numerical payout example would imply decisions that have not been made. This document therefore uses no assumed investment return or fee rate.
13
Open terms and evidence
Terms requiring further definition include the state-specific deposit and account structure; consent steps; claim funding recovery and disputes; management-fee terms; strategy risk and liquidity limits; payout and early-exit timing; operational providers; tax reporting; and host access permissions.
This version is based on the product owner’s completed investment-product questionnaire and follow-up clarifications, reflected in the October 4, 2026 implementation plan. It does not cite independent performance evidence or confirmed offering documents. The existence and public availability of any formal offering documents remain unconfirmed.
Before an investment service is offered, the applicable product facts, legal arrangements and operational capabilities will need to be established. This paper should be updated when those facts change.
14
Version and contact
Version 0.1 · October 4, 2026 · Development-stage product explanation. This paper and the interactive preview describe planned capabilities. Joining the waitlist is an expression of interest only.
For questions about this document, contact secured@splitin.net. Renters and hosts can join the shared waitlist for development updates.